Fat fingers - sorry ! I am glad they released after 16-30 so we have time to read analyse and digest it properly - especially as it is so comprehensive. I see it as good news on reflection .. Happy to be well on board !
I posted on another board recently on a placement comment that in the absence of senior debt ( which is nowadays secured on producing assets predominately ) placing sate part of the funding for growth facilities available.
They can of course be use for other more negative purposes too .
My take here is that . 1. Chariot will probably have an oversubscribed placing 2. The current cash Is allocated and also provides a buffer 3.. The opportunity to aquire potential asset has presented itself is strong enough to allow the business to confidently find it by way if placing .
Whilst some of the key directors are investing it is particularly interesting to see the size if investment from the non execs own vehicle £1million
In due course sounds like it should be something they should be hinting at more strongly by way Of PR letting it slip out steadily ;)
Comments: 1. Funds to be used for 50% of 3D seismic costs in Brazil, commercial terms agreed to farm out 25% of licence to pay the other 50% of the licence. Giant potential being accelerated.Also looking to farm out more of the 3D seismic cost. 2. Funds to be used to fund a new venture in a country where they operate to increase option value. Very cryptic. Its a wild guess of mine but could it be the acquisition of gas production in Morroco, good move if true. 3.New licence being applied for in Block 2714A as i suggested just earlier. 4. Mauritania 3D seismic interpretation nearing completion, expect a prospect to be ready for drilling subject to partnering in 2015/6 5Namibia Central block " Chariot is progressing a number of processes and the Company will update the market in due course" --- not sure what that means 6. Chariot applied for additional acreage in a country which it operates which will increase the option value of the portfolio in that country. 7. Six Directors will buy shares in the placing, including Adonis for $1 million.
Conclusion. Chariot are moving straight into 3D seismic in Brazil without 2D seismic, 800Km2 of seismic which is already part funded. Chariot also looking to fund the rest of the 3D seismic with another farm out, so really all the money is most likely to be used for this new venture in a country it allready operates in. Share capital to be increased by circa 25%, but as company is trading at cash already there is no dimunition in share value. It looks like good news to flow soon though
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